Share Market Today: India’s benchmark indices, Sensex and Nifty 50 are trading in red on Tuesday, December 17, 2024. The Sensex (index with top 30 firms) tumbled by 1,029.91 points to reach 80,718.66 during Tuesday’s trade. Nifty50 (index with top 50 firms) declined to reach 24,359.25 points.
Additionally, foreign investors withdrew an amount of Rs 21,612 crore from Indian equities in November. These investors had pulled out Rs 94,017 crore from Indian stock market in October 2024. However, these investors invested Rs 25,702 crore from the Indian equities this month so far.
Sensex and Nifty 50, settled down in red on Monday as well. The Sensex tumbled by 384.55 points to settle at 81,748.57. Meanwhile, Nifty50 declined by 100.05 points to settle at 24,668.25 points.
Meanwhile, the Reserve Bank of India’s (RBI) recently reduced the Cash Reserve Ratio (CRR) from 4.5% to 4%, injecting liquidity into the financial system. The decision to lower the Cash Reserve Ratio (CRR) is expected to inject liquidity into the system, spur credit growth, and provide a much-needed impetus to India’s economic recovery. Furthermore, the RBI also maintained the repo rate steady at 6.5%.
Sensex Tumbles Over 1,000 Points: What’s Behind The Crash?
The share market benchmarks declined, weighed down by heavyweights Reliance Industries, Infosys, and HDFC Bank. This is because the investors were cautious in anticipation of the US Federal Reserve’s meeting on December 18. Furthermore, they are seeking clarity on the bank’s future interest rate decisions.
Experts also believe that India’s widening trade deficit, which surged to $37.8 billion in November, is expected to exert downward pressure on the rupee. According to experts, this depreciation of the rupee will likely benefit export-oriented sectors such as IT and pharmaceuticals, while increasing costs for importers. As a result, the stock prices of companies in these sectors may be impacted, with importers facing losses.
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